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External and Internal Factors Essay

McDonald’s history began with the dream of two brothers, Dick and Mac McDonald, who opened a bar-b-que restaurant in San Bernardino, California, in 1940 (McDonald’s, 2011). The popularity of the drive-in burger joints faltered the McDonald brothers’ business, so in 1948, they revamped the menu making the main staple hamburgers and French fries (McDonald’s, 2011). Gaining the reputation for quality and service, the McDonald brothers wanted to expand their dream by starting a national franchise of restaurants (McDonald’s, 2011). Today McDonald’s serves millions of customers worldwide providing the same reputed quality and service since its inception. The McDonald’s executives credit factors and functions of its management for their success over the years (McDonald’s, 2011).

Internal and external factors have an effect on any business environment (Bateman & Snell, 2009). Internal factors determine the culture within a business (Bateman & Snell, 2009). Mission statements, values, practices, codes of conduct, and QSC and V (quality, service, cleanliness, and value) are the internal factors that govern the behavior of the employees at the McDonald’s corporation (McDonald’s, 2011). These controlling elements are what makes McDonald’s number one in the global marketplace. McDonald’s mission statement implies a strong focus on customer satisfaction; customer satisfaction is also one of the core values of McDonald’s (McDonald’s, 2011). Belief in their core values causes everyone to share the same goals and priorities within the McDonald’s Corporation.

The shared goal at McDonald’s is to serve its customers with professional and personal integrity by earning the trust of its customers (McDonald’s, 2011). They earn the trust of their customers by providing a quality product, friendly service, and a clean environment in their restaurants. McDonald’s implemented codes of conduct for employees to allow a connection between the board of directors and management in every aspect of business at McDonald’s (McDonald’s, 2011). In every strong business culture there is a possibility for weaknesses (Bateman & Snell, 2009). Some of McDonald’s weaknesses are legal issues because of unhealthy food and fierce competition (McDonald’s Corporation, 2009). These weaknesses contribute to the external factors of the McDonald’s Corporation.

External factors are relevant outside sources of a business (Bateman & Snell, 2009). External factors determine how companies conduct business (Bateman & Snell, 2009). The contributors of the external factors of an organization not only consist of customers and suppliers but also the economy, the government, and the competitors (Bateman & Snell, 2009). Some external factors have a negative effect on business (Bateman & Snell, 2009). For example, the recent rise in health concerns caused environmentalists to pursue a class action against the McDonald’s Corporation (McDonald’s Corporation, 2009). The issue was unhealthy foods prepared in trans fat. The environmentalists stated that trans fat can lead to obesity, heart attacks, and strokes (McDonald’s Corporation, 2009). For this reason, management had to plan and organize a solution to counteract McDonald’s contribution to the growing health concerns. In 2007, McDonald’s began the holistic approach for the Happy Meal (McDonald’s, 2011). They also offer fruits and salads on their menu to all customers.

McDonald’s stopped preparing foods in trans fat. Their commitment is to the well-being of their customers (McDonald’s, 2009). Organizing, leading, planning, and controlling have many effects on the success of McDonald’s, and the following areas of business in the following ways: Globalization- It took careful planning and organization for McDonald’s to target the various markets before globalizing its franchise chain. Research and development provided data about countries where chains of the McDonald’s franchise would prosper. The globalization of McDonald’s would fail without the proper planning of locations of in areas with established opportunities for success. To prevent failure, research and development has to acquire geographical and financial data as well as the desire for a McDonald’s restaurant by the locals. Globalization requires capital to make sure that the locations of the McDonald’s restaurants are lucrative. Successful globalization lies in the planning and location of the business. Technology- As time goes on; McDonald’s credits its success to the leadership and control of the business aspects of the corporation.

Implementing modern technology has kept McDonald’s the number one fast food retail franchise globally. One of the ways McDonald’s technology keeps them ahead is the revolution of computer-assisted display monitors and advertising through television, the Internet, and billboards. When services and food ordering began, there were simpler ways of taking a customer’s order, which resulted in slower service and therefore, a loss of business. McDonald’s further revolutionized taking orders by modernizing the drive-through service. The drive-through allows consumers to place orders without leaving their vehicles. McDonald’s maintains its leadership in fast food retail because of spearheading these operations. To ensure that their product is not to be undersold, advertisement has never ceased and continues to grow daily. Through television marketing, endorsements by high-profile celebrities and athletes, Internet ads, and billboards advertising their product, the technological advances allow McDonald’s to keep the attention of new and current customers. Innovation- Innovation is another function of the management group and directly attributes any of the four stages, but more than likely the controlling departments are most influential in this area.

The controlling areas of management have to be aware of the competition and also wary of the current trends in marketing. This also requires a certain amount of capital and research and development, but in the end keeps the business ahead of the curve. Diversity- McDonald’s achieves diversity in all areas of management whether it is conducting business practices or menu selections. Planning goes into making sure all of the business decisions are diverse. Multiple opinions and decisions are necessary to reach all demographics. Diversity in hiring practices as an equal opportunity employer ensures that all employees and potential employees have fair and equal rights. McDonald’s menu selections are diverse and offer different items for consumers with religious and diet concerns, such as low carbohydrates. Ethics- McDonald’s Corporation governs a strong ethical code to ensure that all employees are aware of and maintain ethical practices.

Whether in the planning or controlling functions, it is a must that all areas of the McDonald’s Corporation adheres to the most standardized and controlled ethical policies to meet the criteria of the FDA and consumer’s standards. If these conditions and standards are not met, it could lead to the loss of employees and more important consumers. * Managers use many factors and functions in a typical work day. For a successful manager an important tool is the proper use of delegation. When the use of delegation is accurate, it can be vital to the progress and growth of a business. A manager must hand over the responsibility, accountability, and authority when appointing another to complete a task (Bateman & Snell, 2009). A manager’s knowledge of his or her employee’s abilities and the individual he or she is delegating a task to is imperative. The expectation is that the employee will accomplish the appointed task properly and in a timely manner. In essence he or she is responsible to complete a project that will have the delegators name attached. If the task is complete and correct a delegator has more time that they can use effectively to enhance the business. Delegation is imperative when planning a business.

When the final plan lies in the hands of one person, he or she must enlist in others to help finalize the project. By delegating employees to help with researching and marketing, a manager is depending on him or her to report back with accurate information, which the manager will include at the end of the project in a report to his or her boss. Relying on other individuals to help with the planning process also encourages employees to input ideas (Bateman & Snell, 2009). Introducing different levels of responsibility is a significant tool. Assigning different stages of leadership can hold subordinates accountable for additional employee (Bateman & Snell, 2009). Filtering information an employee collects through a supervisor before reaching the lead manager saves time (Bateman & Snell, 2009). As with any delegation, the supervisors needs to know that he or she has total authority to complete the task as well as time and resources (Bateman & Snell, 2009).

A time table is necessary so that the supervisor can report to the manager to make sure the progress is flowing smoothly. An efficient manager is aware of what tasks can and cannot be delegated even to a supervisor (Bateman & Snell, 2009). Delegation comes with many beneficial attributes. Assistance in completing managerial tasks can elevate some pressure and with the positives, negatives can hide. If delegations are not successful or if the subordinate will not fulfill his or her part the fault lies in the delegator. The delegator must accept the subordinates work as his or her own work and look over the work to make sure it is correct (Bateman & Snell, 2009). Delegating to a capable employee will encourage the individual to take pride in his or her work and invest interest in the completion of the project and the future of the company (Bateman & Snell, 2009). Delegation is a crucial management tool that when used with factors and the four functions of management can effectively help the evolution of the business (Bateman & Snell, 2009).

In conclusion, McDonald’s history of quality and service still thrives today. The McDonald’s Corporation attributes its success to their management. The internal factors like the mission statement, values and practices, and codes of conduct are controlling functions that govern the behavior of the employees at McDonald’s. The external factors like legal actions for unhealthy food products place weakness in the strong brand image of McDonald’s; however, to remain number one in fast food retail, McDonald’s revamped their menu to offer healthier foods and provide nutritional information to their consumers. Globalization, technology, innovation, diversity, and ethics are other factors that affect the success of McDonald’s. The managers of McDonald’s play a vital part in these factors. To use these functions, the managers of McDonald’s must delegate various tasks to qualified employees. Only McDonald’s stay committed to the well-being of their customers, and the customers are loving it.

Bateman, T. S., & Snell, S. A. (2009). Management: Leading & collaborating in a competitive world (8th ed.). Boston, MA: McGraw-Hill Irwin. MCDONALDS. (2011). AboutMcDonalds.com. Retrieved from http://www.aboutmcdonalds.com McDonald’s Corporation SWOT Analysis. (2009). McDonald’s Corporation SWOT Analysis, 1. Retrieved from EBSCOhost.

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